Regulatory Issues of Provisional Measures Administration of Domestic Securities Investments of QFII

Article 31 CSRC and SAFE should annually review QFII's Securities Investment Licence and Foreign Exchange Registration Certificate.

Article 32 CSRC, PBOC and SAFE may require QFII, custodians, securities companies, stock exchanges, and securities registration and settlement institutions to provide information on QFII's domestic investment activities, and may conduct on-site inspections if necessary.

Article 33 Stock exchanges and securities registration and settlement institutions may enact new operation rules or revise previous operation rules on QFII's domestic securities investments, the implementation of which will be effective upon approval of the CSRC.

Article 34 In the event of any of the followings, QFII should file with CSRC, PBOC and SAFE in five working days:

1. Change of custodians;
2. Change of legal representatives;
3. Change of controlling shareholders;
4. Adjustment of registered capital;
5. Litigations and other material events;
6. Being imposed substantial penalties overseas;
7. Other circumstances as stipulated by CSRC and SAFE.

Article 35 In the event of any of the followings, QFII should re-apply for its Securities Investment Licence:

1. Change of business name;
2. Acquired by or merged with other institution(s);
3. Other circumstances as stipulated by CSRC and SAFE.

Article 36 In the event of any of the followings, QFII shouldsurrender its Securities Investment License and Foreign Exchange Registration Certificate to CSRC and SAFE respectively:

1. Having repatriated all its principals;
2. Having transferred its investment quota;
3. Dispersion of authorized entities, entering into bankruptcy procedures, or assets being taken over by receivers;
4. Other circumstances as stipulated by CSRC and SAFE.

If QFII fail to pass the annual review on Securities Investment Licenses and Foreign Exchange Registration Certificates, as mentioned in Article 31, the Licenses/Certificates will automatically be invalid. And the QFII should return these Licenses/Certificates as required by the aforesaid Article.

Article 37 In accordance with their respective authorities, CSRC, PBOC and SAFE will give warnings or penalties to QFII, custodians and securities companies, etc. who violate this Regulation. The same breach, however, should not be subject to two administrative penalties or more. Chapter 7 Supplementary Provisions

Article 38 This Regulation is also applicable to institutional investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region, who conduct securities investment businesses in Mainland China.